Home Warranty - How It Works
In British Columbia the Homeowner Protection Act and regulations ensures that new homes built in the province by licensed residential builders are covered by mandatory, third-party home warranty insurance. This is one of the strongest construction defect insurance coverages in Canada.
Building a new home is likely the largest investment you will ever make. Therefor it is extremely important to carefully research all aspects of the project and screen your home builder well. Make sure that any builder you are considering is registered with BC Housing as a Licensed Residential Builder in British Columbia and has third-party home warranty insurance. It is up to the consumer to hire and work with builders with these qualifications to be covered by a third-party home warranty insurance.
At Bower Builders our provider is Travelers Canada, and they suggest that prior to signing a Contract of Purchase and Sale, that it is wise to contact them to verify that the builder you have chosen is officially registered and that a home warranty coverage has been issued on your prospective new home.
The Act requires builders to provide a home warranty backed by a licensed insurer covering:
2 Year Materials and Labour Warranty –
First 12 months – coverage for any defect in materials and labour
First 15 months – coverage for any defects in materials and labour in the common property of a multi-unit building
First 24 months – coverage includes defects in materials, labour and design supplied for the electrical, plumbing, heating, ventilation and air conditioning delivery and distribution systems. As well as, defects in materials, labour and design supplied for the exterior cladding, caulking, windows and doors that may lead to detachment or material damage to the new home
5 -Year Building Envelope Warranty
10 -Year Structural Defects Warranty
Once the project is complete, a Licensed Residential Builder is responsible for having the new homeowners sign and date a Warranty Commencement Date Certificate. At this time Travelers Canada will issue the owner a 2-5-10 Year Home Warranty Certificate explaining the home warranty coverage and the process for reporting defects in your home. Homeowners are advised to report any issues promptly to the builder during the warranty period as the builder is typically responsible for addressing and repairing these defects within the specified warranty periods.
